Components peripherals News
Thomas Grillo
August 09, 2022, 01:25 PM EDT
President Biden said the CHIPS Act is a way to restore the nation’s semiconductor industry and is ‘a once-in-a-generation investment in America itself’. This may interest you : Political consultant James Carville discusses Louisiana politics, planning and culture.
As executives from Intel, Micron Technology, IBM, Lockheed Martin, HP and AMD looked on, President Biden signed a $280 billion bipartisan bill to boost domestic high-tech manufacturing.
“The future will be made in America,” Biden said, calling the measure “a one-generation investment in America itself.”
The president hailed CHIPS as a way to restore the nation’s semiconductor industry. He said that while the United States invented the semiconductor chip that manufacturers depend on, today they must rely on chips all over the world.
That is something, he said, that threatens the American economy and national security.
The measure would pour $52 billion in subsidies and credit credits into chip manufacturing and research and $170 billion into innovation and space exploration.
[RELATED STORY: INTEL FIGHTS ON: CHIPS RULE WILL BENEFIT US SEMICONDUCTOR INDUSTRY]
Intel CEO Pat Gelsinger, who has been the public face of support for the measure despite criticism, praised the signing of the act.
Today the #CHIPSAct funding was signed into law. Thank you @POTUS, @GinaRaimondo, all bipartisan leaders in Congress & anyone involved in supporting the semiconductor industry. We look forward to working w/Business to implement this important initiative!
IBM Chairman and CEO Arvind Krishna also tweeted after President Biden signed the CHIPS and Science Act:
After the signing, Micron Technology announced plans to invest $40 billion through 2029 to build multi-phase memory manufacturing in the U.S.
Micron President and CEO Sanjay Mehrotra said the investment was made possible by anticipated grants and credits from the CHIPS Act.
“This legislation will enable Micron to increase its domestic production of memory from less than 2 percent to 10 percent of the global market over the next decade, making it the home of the most advanced memory manufacturing and R&D in the United States. the world,” he said in a statement.
Kent Tibbils, vice president of marketing for ASI, Fremont, Calif. the national distributor of IT equipment and software, said the law will address supply chain issues as well.
“I think it’s good news for everybody,” he told CRN.
Tibbils said that one of the hidden gems of the law is that it will promote the production of integrated circuits.
“These are the types of sectors that manufacturers don’t usually invest in because they don’t make a lot of money,” he said. “A lot of the supply shortage that was happening was because of limited capacity in that area.”
Thomas Grillo
Thomas Grillo covers chips and the Internet of Things for CRN. He has covered the real estate and business sections of the Boston Globe, Boston Herald, Boston Business Journal, Banker & A businessman, and Lynn’s daily object. He can be reached at tgrillo@thechannelcompany.com.
